John Hancock stable value funds

provide plan sponsors and participants with a capital preservation option backed by John Hancock’s 150-year history and proven financial strength, stability, and stable value investment expertise.¹

Guaranteed principal and interest to deliver stable and steady returns 

Well-diversified, investment-grade, fixed-income portfolios.

Designed for plan participants who are:

  • Conservative and risk averse
  • Concerned with market volatility
  • Approaching retirement

Benefits for plan sponsors:

  • A competitive crediting interest rate
  • A transparent structure

Backed by the financial strength of John Hancock

A+

A.M. Best Company

(2nd highest of 13 ratings)

Superior ability to meet ongoing insurance obligations

AA-

S&P Global Ratings

(4th highest of 21 ratings)

Very strong financial security characteristics

 

A1

Moody’s Investors Services Inc.

(5th highest of 21 ratings)

Low credit risk

 

AA-

Fitch Rating Inc.

(4th highest of 21 ratings)

Very strong capacity to meet policyholder and contract obligations

John Hancock offers two stable value funds

Both seeking to preserve capital and provide stability of principal while earning current income.

 

John Hancock Stable Value Guaranteed Income Fund

John Hancock Stable Value Fund

Structure

Group annuity contract or rider

Pooled collective investment trust

 

Inception date

December 2019 for open architecture plans 

June 2020 for Signature plans

May 2, 2006

Guarantor / Insurer Standard & Poor’s Rating

John Hancock Life Insurance Company USA (AA-)

Four external insurance providers:

Pacific Life (AA-)

State Street (AA-)

Prudential (AA-)

MetLife (AA-)

Minimum investment

No minimum No minimum

Crediting rate reset

Semi-annually, January 1 and July 1 Monthly

Portability²

Expected Q4 2020 Yes

The AA- rating is Standard & Poor’s (S&P) assessment of the financial strength and claims paying ability of the insurance company. S&P defines companies with AA rating as: An insurer rating AA has very strong capacity to meet its financial commitments.

Related viewpoints

1 Financial strength ratings, which are current as of 5/7/2020 and are subject to change, apply to the main life operating companies of Manulife Financial Corporation including The Manufacturers Life Insurance Company, John Hancock Life Insurance Company (USA), John Hancock Life & Health Insurance Company, & John Hancock Life Insurance Company of New York as a measure of the respective issuing company’s ability to meet its ongoing insurance and contract obligations. The ratings are not an assessment or recommendation of specific products, the performance of these products, the value of any investment in these products upon withdrawal or the individual securities held in any portfolio.  2 Portability to a new recordkeeper requires that recordkeeper to enter into a fund distribution agreement with John Hancock.

A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. There is no guarantee that any investment strategy will achieve its objectives.

The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made herein.

There is no guarantee that any investment strategy will achieve its objectives. All investing involves risk including possible loss of principal.

Stable value portfolios typically invest in a diversified portfolio of bonds and enter into wrapper agreements with financial companies to prevent fluctuations in their share prices. Although a portfolio will seek to maintain a stable value, there is a risk that it will not be able to do so, and participants may lose their investment if both the Fund's investment portfolio and the wrapper provider fail.

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